Research from Alares suggests the spike in business insolvencies is being driven primarily by tax debt.
Outstanding debts owed to the Tax Office are pushing a growing number of Australian businesses into voluntary administration in hopes of preventing a collapse.
Tax debt is the primary driver behind the growing number of business recovery activities engaged in by businesses of all sizes, according to Jirsch Sutherland.
Last month, ATO tax commissioner Rob Heferen said taxpayers owed over $50 billion in collectable debt, nearly two-thirds of which was owed by small businesses. In June 2019, tax debt owed to the ATO was $26.5 billion, representing a near 100 per cent…
